Digital Personal Data Protection Act 2025: A Primer for non-profits

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This resource was originally created by Pacta. We are grateful for their efforts in developing this much-needed material.

Chapter 1 - Introduction

Pacta had written about the Digital Personal Data Protection Bill 20221 (DPDP Bill 2022) and its implications for the social sector in India. On August 11, 2023,2 the Digital Personal Data Protection Act, 2023 (DPDP Act) was notified in the official gazette after being passed by the Parliament and receiving Presidential assent. Following its enactment, on January 3, 2025, the draft Digital Personal Data Protection (DPDP) Rules, 2025 were released for public consultation. These rules invited feedback from stakeholders across different sectors, and Pacta submitted its comments3 during the process. The final rules are expected to be notified shortly, paving the way for phased implementation of India’s data protection framework.

We have observed a surge in interest from the social sector to understand the Act, its implications on NGOs, and how NGOs can navigate the compliances under the new digital data privacy law. Pacta has created this Primer as a guide for nonprofit organisations in understanding the application and effects of India’s Digital Personal Data Protection Act, 2023.

The Union Government has notified the Act in the Official Gazette, but the date on which it will come into force has not yet been announced. Until then, Section 43A of the Information Technology Act 2000, read with the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, will govern questions of data privacy.

Chapter 2 - Application of the Digital Data Protection Act to NGOs

The Act applies:

The Act also covers processing personal data outside of India if that processing is related to:

Channels/Sources of Personal Data:

Examples of data collected by NGOs:

NGOs indulging in the above activities of collecting and processing of Personal Data. Thus the Act will also apply to all nonprofits and charitable organisations that collect personal information from their stakeholders online or offline and then digitise it.

Chapter 3 - Data Privacy Jargon Debunked

Chapter 4 - How Did Data Privacy Become a Mainstream Conversation in India

There are data privacy laws in place in over 130 countries around the world. Some of the most notable data privacy laws include- General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA) in the United States applicable to businesses, Personal Data Protection Act (PDPA) in Singapore, etc.

Anu Bradford, a law professor at Columbia University, coined the term “Brussels Effect” to describe the phenomenon of European rules becoming global standards. She argues that this is because it is easier for companies to apply European rules across their entire organisation, rather than having to comply with different rules in different countries. The Brussels Effect is often seen as a form of soft power.

India’s Digital Personal Data Protection Act, 2023, reflects the influence of the GDPR and the broader Brussels Effect. It incorporates several aligned concepts, including the defined roles of Data Fiduciaries and Data Principals, lawful processing based on informed consent, and other foundational principles such as data minimisation, purpose limitation, and protection of individual rights. These similarities underscore the impact of the Brussels Effect in India’s data protection regime, and how there has been an effort to align the DPDPA with global privacy strategy.

Chapter 5 - Data Privacy Laws - Two Key Ingredients

Two concepts intrinsic to data privacy are - Consent and Notice

2. Notice: Each request for consent must be accompanied by a notice from a Data Fiduciary. This notice should provide information about the process of withdrawing consent, the procedure for addressing grievances, and how to file a complaint with the Data Protection Board (Board). The format and additional details for this notice will be determined by the Central Government, introducing a novel aspect in the DPDPA Act 2023.

Obligation of Data Fiduciary to Provide Clear and Informed Notice to Data Principals

Before collecting or processing personal data, a Data Fiduciary is required must to give a notice to the Data Principal (the individual to whom the data belongs). This notice must comply with the following standards:

At a minimum, notice for consent should include:

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Implication:

Prior to collecting any personal information, NGO Z must issue a clear notice to Person B. This notice must be in plain language and provide a fair account of the following:

Actionable:

The notice provided by NGO Z to Person B must also include:

NGO Z must also ensure that only authorised employees have access to the data strictly for defined purposes. No unrelated personnel within Z are allowed access to any personal data from the database, unless required for a specific purpose.

MODEL NOTICE

Data Principal to be given option to access contents of notice in English or any language specified in the Eighth Schedule to the Constitution

1. Purpose of this Notice

This notice is to inform you of how we, [Name of the Data Fiduciary], want to process your personal data, so that you may give your informed consent.

2. Personal Data Collected

Only the following personal data will be collected from you for the purposes mentioned in this notice:

3. Purpose of Collection

The personal data listed above will be used for the following purposes:

We will only collect as much personal data as is necessary for the above purposes. The personal data will not be used for any other purpose.

4. Retention of Personal

We will process your personal data only till the purposes mentioned are served:

5. Right to Withdraw

You can withdraw your consent for processing your personal data at any time by:

<example: clicking here [hyperlink]>

Upon withdrawal, your personal data will be erased unless legally required to retain it.

6. Contact for Questions

If you have any questions regarding the processing of your data, you can contact us at:

<example: clicking here [hyperlink for contacting the person who will respond]>

7. Your Rights

You have the right to:

8. Grievance Redressal and Other Rights Data

You can:

If no reply is received within <example: 72 hours>, you may approach the Data Protection Board of India at <example: clicking here [hyperlink]>

9. Save or Download Notice

You can save a copy of this notice by:

<example: clicking here [hyperlink]> and download it on your mobile.

Chapter 6 - Data Fiduciary’s Obligations under the Act

1. Accurate Information

If the Personal Data is likely to be used by the Data Fiduciary to make a decision that “affects” the Data Principal or if the personal information is likely to be shared with another Data Fiduciary, the Data Fiduciary must exercise reasonable efforts to make sure that the personal information processed by or on behalf of the Data Fiduciary is accurate and complete.

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2. Security Measures

The Data Fiduciary must take reasonable security precautions to prevent a breach of the Personal Data it has in its possession or under its control.

The Data Fiduciary shall undertake the following measures to ensure the security and integrity of personal data: The Data Fiduciary shall protect personal data through methods such as encryption, masking, or the use of virtual tokens. While NGOs acting as Data Processors may not be directly responsible for obtaining consent or responding to Data Principal’s requests for the exercise of their rights, they are expected to operate responsibly. Such NGOs should adhere to reasonable safeguards, and procedures such as:

3. Notify Data Breaches

In the event of a Personal Data breach, Data Fiduciaries must promptly notify the Data Protection Board (which shall be constituted by the government) and each affected Data Principal. Failure to take reasonable security safeguards to prevent Personal Data breaches is punishable by a penalty of up to Rs. 250 crores and the failure to notify the Board in case of a data breach is punishable by a penalty of up to Rs. 200 crores. Further, Data Fiduciary shall, to the best of its knowledge, promptly inform each affected Data Principal in a concise, clear, and plain manner, and without delay, using their user account or any registered mode of communication.

i. The notification to the Data Principal shall include:

ii. The Data Fiduciary shall, without delay, intimate the Data Protection Board of such breach, providing:

iii. Data Protection Officer or any designated Point of Contact must mandatorily report the incident to CERT-In immediately upon becoming aware of it, following the method and format specified on the CERT-In website.

iv. The Data Fiduciary is also required to maintain logs of all their Information and Communications Technology (ICT) systems for a rolling period of 180 days, which must be provided to CERT-In either along with the incident report or upon direction from CERT-In.

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Implication:

Actionable:

Before a Breach: Preventive Measures

After a Breach: Immediate Response

Additionally, the DPO or designated contact must promptly report incidents to CERT-In as per its prescribed format. NGO X must retain ICT system logs for 180 days and share them with CERT-In when required.

4. Delete Data When No Longer Necessary

The Act introduces specific guidelines for Data Fiduciaries to delete Personal Data, outlining instances where deletion is necessary, particularly when it’s reasonable to assume that a designated purpose is no longer valid. Notably, the Act empowers the Central Government to establish timeframes for different classes of Data Fiduciaries, determining when a purpose can be considered as no longer valid – a novel aspect of the DPDP Act 2023. The Data Fiduciary must notify the Data Principal at least 48 hours before the scheduled deletion of her personal data. This notice must inform the Data Principal that her personal data will be erased once the specified retention period ends, unless:

5. Appointment of Data Protection Officer

Data Fiduciaries must appoint a Data Protection Officer who would be responsible for addressing any queries from the Data Principals regarding their Personal Data. This Data Protection Officer is to be based out of India only if the Data Fiduciary falls within the definition of a Significant Data Fiduciary. Every NGO shall prominently publish on its website or app, and mention in every response to a communication for the exercise of the rights of a Data Principal under the Act, the business contact information of the Data Protection Officer, or a person who is able to answer on behalf of the NGO the questions of the Data Principal about the processing of her personal data.

6. Grievance Redressal Mechanism

The Data Fiduciary shall establish an effective mechanism to redress the grievances of Data Principals. Further, the Data Fiduciary is required to publish the period it takes to respond to grievances under its grievance redressal system. This information must be made available on its website, app, or both, as applicable.

7. Cross-Border Transfer

Under normal circumstances, Data Fiduciaries can transfer Personal Data to any country except those regions that might be officially notified as restricted destinations by the government in the future.

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8. Children’s Data / Data of Person with Disability:

Data fiduciaries have the additional obligation to obtain verifiable parental consent or consent of the lawful guardian while processing the personal data of a child or data of a Person with Disability. Data Fiduciaries must refrain from data processing that would cause any detrimental effect on the well-being of a child and also refrain from tracking, monitoring, and targeted advertising aimed at children. Failure to adhere to this attracts a penalty of up to INR 200 crores. As per the 2023 Act, the Central Government is also empowered to notify the age above which certain Data Fiduciaries will be exempt from these obligations, if it is satisfied that the processing of children’s Personal Data is carried out by a Data Fiduciary in a ‘verifiably safe’ manner.

NGOs must take technical and organisational steps to ensure that verifiable consent is obtained before processing personal data of a child or a person with a lawful guardian.

This identification can be confirmed through:

These safeguards help ensure that consent is legitimate and traceable, reducing legal and ethical risks when working with vulnerable populations.

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Chapter 7 - Right of the Data Principal

  1. The Data Principal has the right to withdraw the consent that the indivitual has given earlier for the collection and processing of their Personal Data. The withdrawal of consent, however, would not affect the legality of the processing of personal data before the withdrawal.
  2. Right to access information about personal data
    The Data Principal has the right to request and obtain from the Data Fiduciary
    • a summary of personal data being processed and the processing activities involved
    • the identities of any third parties with whom the personal data has been shared, and a description of the shared data and
    • any other information about the personal data and its processing, as prescribed under any Applicable Law

      However, points (ii) and (iii) shall not apply when the Data Fiduciary shares personal data with third parties authorised by law to obtain such data, for purposes such as for crime prevention, investigation, or prosecution of offences or cyber incidents, based on a written request.

  3. Right to correction and erasure of personal data
    • The Data Principal has the right to correct, complete, update or erase their personal data, which they have previously consensually given, in line with Applicable Laws
    • The Data Fiduciary shall, upon receiving a request for correction, completion or updating from a Data Principal, —
      • correct the inaccurate or misleading personal data
      • complete the incomplete personal data and
      • update the personal data
    • If a Data Principal requests the erasure of their personal data, Data Fiduciary shall comply unless the retention of that data is necessary for a specified purpose or to comply with any Applicable Law.
  4. Right to Nominate

    A Data Principal shall have the right to nominate another person who, in the event of the Data

    Principal’s death or incapacity, can exercise the Data Principal’s rights under Applicable Laws.

  5. Right to Grievance Redressal

    A Data Principal has the right to access readily available means of grievance redressal provided by a Data Fiduciary. This right applies in cases where the Data Fiduciary has acted or failed to act in fulfilling its obligations concerning the Data Principal’s personal data or in relation Data Principal’s rights under the Act and its rules.

    • The Data Fiduciary is required to respond to such grievances within a prescribed period from the date of receiving the grievance

    • Before approaching the Data Protection Board, the Data Principal must first exhaust the grievance

      redressal mechanism provided by the Data Fiduciary

Chapter 8 - Exemptions

The Digital Personal Data Protection Act, 2023 (DPDPA) contains specific provisions that exempt certain types of data processing activities from the scope of the Act. These exemptions have significant implications for the rights of individuals and the obligations of data processors.

1. Exemption for Processing of Data for Research, Archiving, or Statistical Purposes

The provisions of the Act do not apply for personal data processed exclusively for research, archiving, or statistical purposes, under defined conditions. Archiving refers to safely storing data or records over a long period of time because such data may be useful for historical research or reference, and not for day-to-day use or decisions.

Conditions for Exemption:

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Implications:

NGO X must provide contact details of a person who can answer the Data Principal’s questions about personal data processing, along with a clear link to its website or app and any other ways to exercise rights under the Act. NGO X must implement reasonable security safeguards to prevent personal data breaches.

Actionable Steps for NGO X

2. Verifiable Parental Consent Exceptions

S.No.

Who is Exempted

When the exemption applies

1

Clinics, hospitals, mental health centres, and healthcare professionals

When they process a child’s data to pro- vide health services or advice, but only as much as needed to protect the child’s health.

2

Healthcare professionals

When they support or refer a child for treatment or care, based on a healthcare professional’s recommendation, only as needed for the child’s well-being.

3

Educational institutions

When they monitor children’s behaviour

and activities:

  • for school-related purposes; or
  • to ensure the child’s safety in the school environment.

4

Individuals responsible for children in crèches or day-care centres

When they monitor children’s behaviour or activities to ensure their safety and well-being in these facilities.

5

Transportation staff working for schools or day-care centres

When they track a child’s location during travel to and from school or a crèche, strictly for the child’s safety.

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S.No.

Purpose

When the exemption applies

1

Exercising official duties or functions related to a child under Indian law

When processing is only done to the extent required for the specific function or duty.

2

Issuing benefits, licenses, or services (like subsidies or certificates) to a child using public funds

When the processing is only as much as needed to provide the benefit or service.

3

Creating a user account for a child

Only when the account is needed to com- municate with the child and they cannot access the account otherwise.

4

Providing important information to the child

When the information is essential, and the child cannot receive it without the data being processed.

5

Confirming the child’s age or verifying that the person giving consent is a parent or guardian

When this is necessary to meet require- ments related to age or consent.

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3. Exemption from Verifiable Parental Consent: Ensuring Minimal

A Data Fiduciary may process the personal data of a Data Principal for the following purposes:

Note: While the above exceptions extend to the entire Act, including consent and notice requirements, NGOs acting as Data Fiduciaries or Data Processors must ensure that processing is conducted lawfully, with reasonable efforts to ensure accuracy, retained only as long as required for the specified purpose or legal compliance, and protected by appropriate security measures to prevent personal data breaches, including during processing by third parties on their behalf.

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4. Processing of Health Data by NGOs under the DPDP Act, 2023

Under the Digital Personal Data Protection (DPDP) Act, 2023, certain categories of health data processing are exempt from the requirement of explicit consent. These include:

Note: Anonymisation is critical when using health data for research or statistical purposes to ensure that individuals cannot be identified, directly or indirectly.

Although the DPDP Act provides certain exemptions, health data remains classified as Sensitive Personal Data under the IT (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011. The IT Act and the SPDI Rules also impose certain obligations in line with the DPDP Act and its Rules, such as obtaining consent, allowing access and correction, restricting disclosure, and maintaining a clear privacy policy. In addition, the IT Rules recommend the implementation of reasonable security practices like ISO/IEC 27001 and the appointment of a Grievance Officer to address complaints within one month. However, once the DPDP Act and its Rules are fully notified, they will override the IT Rules.

Compliance Requirements for NGOs in the Health Sector

NGOs that process personal health data, even when exemptions apply, must adhere to the following core compliance obligations under the DPDP Act:

Obligation

Requirement

Data use Limitation

The data must be used solely for the specific health purpose for which it was collected, for research purposes, or for responding to emergencies, in accordance with applicable laws and safeguards.

Data Security

NGOs shall implement encryption, access control mechanisms, and regular audits to

prevent data breaches.

Consent Manage-ment

Where consent is required, it shall be informed, specific, and revocable by the data

principal.

Transparency

NGOs shall clearly inform individuals about the purpose of data collection and their

rights under the DPDP Act.

Retention Policies

Health data shall be retained only as long as necessary for the intended purpose and securely deleted or anonymised thereafter.

Accountability

NGOs shall appoint a qualified Data Protection Officer (DPO) to oversee compliance,

manage audits, and act as a point of contact with the Data Protection Board.


Processing TB Health Data: Public Health Exception for NGOs

👉🏼 An NGO Y operates a community-based tuberculosis (TB) screening and awareness program in remote districts of India.

👉🏼 The initiative is conducted in partnership with district health authorities and aims to reduce TB incidence through early diagnosis, treatment linkage, and health education.

Data Processing Activities

Applicable Exemptions

Compliance Measures Taken by the NGO:


Revision #8
Created 2025-08-08 11:39:27 UTC by Pooja
Updated 2025-12-16 06:34:26 UTC by Pooja